Oct. 23 (Bloomberg) — Janus Capital Group Inc., the firm that hired bond legend Bill Gross last month, said profit rose 25 percent in the third quarter as assets rose from a year earlier, boosting fees for managing money.

Net income at Janus increased 25 percent to $40.9 million, or 22 cents a share, from $32.6 million, or 17 cents a share, a year earlier, the Denver-based firm said today in a statement. Earnings matched the 22-cent average estimate of five analysts surveyed by Bloomberg.

Chief Executive Officer Richard M. Weil has raised the firm's profile in the past month, hiring Pacific Investment Management Co. co-founder Gross and agreeing to buy VelocityShares LLC to expand in exchange-traded products. Customers pulled a net $2.4 billion from Janus's equity funds in the quarter, while putting in $300 million into the firm's fixed-income products. Since taking over in 2010, Weil has struggled to stem defections even as he expanded Janus's fixed- income team and created a multi-asset investing group.

"Bill's decision to join Janus is reshaping the fixed income landscape across the industry," Weil and Chief Financial Officer Jennifer McPeek said in the company's earnings presentation. Gross's fund "stands to benefit substantially over time across distribution channels and geographies," and other franchises including asset allocation are also benefiting, according to the presentation.

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